Effect on the Economy

There is a lot of pessimism about the economy, but there may be a positive side to the disaster.

If the nuclear plant situation doesn’t escalate, the sense of purpose and investment in re-building may have a positive effect in the slightly longer term. The contribution of the Tohoku area to GDP is only 1%. The major negative impact is from power cuts, but the Japanese are very good at matching consumption to supply.

Posted in